DoD's $15.1M contract for ADP/Telecommunication Services with Unisys Corporation shows fair value and limited competition
Contract Overview
Contract Amount: $11,255,946 ($11.3M)
Contractor: Unisys Corporation
Awarding Agency: Department of Defense
Start Date: 2004-10-01
End Date: 2010-05-22
Contract Duration: 2,059 days
Daily Burn Rate: $5.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200505!000005!5700!FA4452!HQ AMC/A7KF !GS35F0343J !C!N! !Y!FA445205F0008! !20041001!20050930!150780674!150780674!005358932!N!UNISYS CORPORATION !11720 PLAZA AMERICA DR !RESTON !VA!20190!68328!163!17!SCOTT AFB !ST. CLAIR !ILLINOIS !+000001501296!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541519!E! !6! ! ! ! ! !20200930!B!F!Y! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: SCOTT AFB, ST. CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $11.3 million to UNISYS CORPORATION for work described as: 200505!000005!5700!FA4452!HQ AMC/A7KF !GS35F0343J !C!N! !Y!FA445205F0008! !20041001!20050930!150780674!150780674!005358932!N!UNISYS CORPORATION !11720 PLAZA AMERICA DR !RESTON !VA!20190!68328!163!17!SCOTT AFB !ST. … Key points: 1. The contract value of $15.1M over its duration appears reasonable for the services provided. 2. Competition was limited, suggesting potential for higher pricing than in a fully open market. 3. The risk of overpayment is moderate due to the limited competition and fixed-price structure. 4. Spending in the IT sector for ADP and telecommunication services is substantial across government agencies.
Value Assessment
Rating: fair
The contract's total value of $15.1M over approximately 6 years suggests an average annual spend of around $2.5M. Benchmarking against similar large-scale IT service contracts, this pricing appears within a reasonable range, though specific service details would allow for a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. However, the specific details of the bidding process and the number of bids received are not fully detailed here, making it difficult to assess the full impact on price discovery.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring the government receives the most competitive pricing available in the market.
Public Impact
Taxpayers benefit from competitive bidding processes that aim to secure the best possible prices for government services. The duration of the contract (over 6 years) indicates a long-term need for these IT and telecommunication services within the Department of Defense. The use of a firm-fixed-price contract structure helps to control costs and provides predictability for the government's budget.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price creep over the contract's long duration if not managed effectively.
- Limited insight into the specific performance metrics and service level agreements.
- Reliance on a single vendor for critical ADP and telecommunication services.
Positive Signals
- Awarded under full and open competition, suggesting a competitive pricing environment.
- Firm-fixed-price contract provides cost certainty.
- Long-term contract indicates a stable and ongoing requirement.
Sector Analysis
This contract falls within the Information Technology sector, specifically for Other ADP and Telecommunication Services. Government spending in this area is consistently high, driven by the need for modern digital infrastructure and communication capabilities across all branches.
Small Business Impact
The data indicates this contract was awarded to a large corporation, UNISYS CORPORATION. There is no explicit information provided regarding subcontracting opportunities for small businesses on this particular award.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, a component of the Department of Defense. Standard oversight mechanisms for federal contracts would apply, including performance monitoring and financial accountability, though specific oversight details are not provided.
Related Government Programs
- Computer and Software Stores
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration may lead to outdated technology or services.
- Potential for cost overruns if scope creep occurs without proper modification control.
- Limited information on specific performance metrics and vendor accountability.
- Concentration of spending with a single large vendor.
Tags
computer-and-software-stores, department-of-defense, il, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.3 million to UNISYS CORPORATION. 200505!000005!5700!FA4452!HQ AMC/A7KF !GS35F0343J !C!N! !Y!FA445205F0008! !20041001!20050930!150780674!150780674!005358932!N!UNISYS CORPORATION !11720 PLAZA AMERICA DR !RESTON !VA!20190!68328!163!17!SCOTT AFB !ST. CLAIR !ILLINOIS !+000001501296!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541519!E! !6! ! ! ! ! !202
Who is the contractor on this award?
The obligated recipient is UNISYS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $11.3 million.
What is the period of performance?
Start: 2004-10-01. End: 2010-05-22.
What specific IT and telecommunication services were procured under this contract, and how do they align with current technological needs?
The contract covers 'Other ADP and Telecommunication Services' (PSC D399), a broad category. Without a detailed statement of work, it's difficult to ascertain the exact services. Given the contract's award and end dates (2004-2010), the services likely included network infrastructure, hardware/software support, and communication systems relevant to that era, potentially including legacy systems.
What was the competitive landscape during the bidding process, and were there specific factors that limited broader participation?
While categorized as 'Full and Open Competition', the specifics of the bidding process are not detailed. Factors limiting broader participation could include stringent technical requirements, specific security clearances needed, or the sheer scale and complexity of the requirement, which might favor established large contractors like Unisys.
How effectively was the firm-fixed-price structure utilized to manage costs and ensure value for money over the contract's extended period?
A firm-fixed-price contract is designed to provide cost certainty. However, over a long duration (2004-2010), the initial pricing might not reflect market changes or evolving service needs. Effective management would involve rigorous performance monitoring and potentially contract modifications if scope changes significantly, ensuring the fixed price remained aligned with delivered value.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8008 WESTPARK DR, MC LEAN, VA, 90
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: GS35F0343J
IDV Type: FSS
Timeline
Start Date: 2004-10-01
Current End Date: 2010-05-22
Potential End Date: 2010-05-22 00:00:00
Last Modified: 2010-03-05
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